Mortgate approvals for first time buyer?

[Aussie and Welshy]

Hi all

I've noticed that there are some mortgage advisors out there so if anyone can help I would love some advice regarding mortgage approvals.

My wife and I (I'm the Aussie, she's the Welshy) are moving to Sydney in the next couple of months from London and after an initial renting period will be looking to buy our first house together. Neither of us have ever owned a house so getting a mortgage secured seems quite a daunting prospect at the moment.

1 - I'm an Aussie citizen but she will be on a 309 spouse visa - does this effect our chances of getting a mortgage?
2 - What would be the typical deposit % a lender would need?
3 - How long would we need to have been working in permanent employment before they would approve a mortgage?
4 - Is there a rough guide of salary multipliers for how much we could borrow?

Thank you in advance to anyone that can help us!

Cheers

[Andrew Williams]

Hi all

I've noticed that there are some mortgage advisors out there so if anyone can help I would love some advice regarding mortgage approvals.

My wife and I (I'm the Aussie, she's the Welshy) are moving to Sydney in the next couple of months from London and after an initial renting period will be looking to buy our first house together. Neither of us have ever owned a house so getting a mortgage secured seems quite a daunting prospect at the moment.

1 - I'm an Aussie citizen but she will be on a 309 spouse visa - does this effect our chances of getting a mortgage?
2 - What would be the typical deposit % a lender would need?
3 - How long would we need to have been working in permanent employment before they would approve a mortgage?
4 - Is there a rough guide of salary multipliers for how much we could borrow?

Thank you in advance to anyone that can help us!

Cheers

Hi Aussie

Answers to your questions:

1 - Shouldn't do

2 - Typically 10% nowadays, maybe 20% with some lenders due to visa situation.

3 - Dependant on what you will be doing and what you were doing in the UK, as well as what deposit you have. So could be 1 week, 3 months, 6 months.

4 - It doesn't quite work that way, it is based on your net disposable income which takes into account how many are living in the household, the lenders servicability rate etc etc.

As a guide 2 adults 0 children earning $100k jointly could borrow anywhere between approx $475 - $625 depending on lender.


Regards

Andy

[The Flinns]

Hi Aussie

It should also be noted that, as neither of you has owned a house in Australia before, that you should also be eligible for the First Home Owners Grant (FHOG)

Kind Regards

Howard

[Aussie and Welshy]

Thanks to both of you for your help!

[Lee The Mortgage Man]

Hi Guys
Just to elaberate a bit on the above advice ( which is all good might I add)
All the Banks are different and some will lend more than others based on what they call your servicability. They work this out on an number of things including your current assets and liabilities, deposit and obviously income.
If you have a 20 % deposit or more, you will avoid LMI (lenders mortgage Insurance) this covers the lender - NOT YOU - in the event that you default on you loan. so try to avoid that if you can, as it can be quite expensive
Difficult to say how much you can borrow without taking all these things into account.
I am from London also, but based in Perth, I am more than happy to help if you dont have anything sorted yet. I have arranged a number of mortgages for interstate clients, so that is no problem with todays modern technology, get in touch...

Hope this helps

Cheers, Lee

[jbro31]

Interesting post, I would be intrigued to know if anyone currently applying for a mortgage on a PR visa (176) has had any problems withe lenders mortgage insurance. My hubby and I have recently got our PR (in Feb) we didn't get a stamp in our passport because the printer was broken at the aus office in NZ. We recevied a letter via email confirming visa grant and dates etc, in these letters they write "If you should go out the country after 2015 (5 years from visa grant) you will need an RRV (residents return visa) in order to come back as permanent resident". On speaking to immi they state they now do this to encourage people to take up their citizenship. It does not mean we don't have PR or that it runs out in 5 years. However, having been told that we wouldn't have to provide 20% deposit for our mortgage the lenders mortgage insurance are saying no, they don't like the visa! Ha, they haven't even specified what they mean because they won't talk to my broker. So even tho the bank is happy to lend us the money the LMI won't cover it. I also found out that institutions should go online to a site called VEVO to make enquiries as to the status of people's visa and it tells them whether you are residents or not and whether you can work etc. However the company attached to our mortgage are not interested. So has anyone had any problems with this, because this has caused us major major issues and our broker has worked her socks off trying to get round this problem but we just seem to be hitting a brick wall. Incidentally finances isn't a problem, this company has had our paperwork for 5 weeks now. We could end up homeless if this goes **** up so I have been stressing big style and in tears because I just can't see a way round it. Any advise or other stories welcome. x

[The Pom Queen]

Interesting post, I would be intrigued to know if anyone currently applying for a mortgage on a PR visa (176) has had any problems withe lenders mortgage insurance. My hubby and I have recently got our PR (in Feb) we didn't get a stamp in our passport because the printer was broken at the aus office in NZ. We recevied a letter via email confirming visa grant and dates etc, in these letters they write "If you should go out the country after 2015 (5 years from visa grant) you will need an RRV (residents return visa) in order to come back as permanent resident". On speaking to immi they state they now do this to encourage people to take up their citizenship. It does not mean we don't have PR or that it runs out in 5 years. However, having been told that we wouldn't have to provide 20% deposit for our mortgage the lenders mortgage insurance are saying no, they don't like the visa! Ha, they haven't even specified what they mean because they won't talk to my broker. So even tho the bank is happy to lend us the money the LMI won't cover it. I also found out that institutions should go online to a site called VEVO to make enquiries as to the status of people's visa and it tells them whether you are residents or not and whether you can work etc. However the company attached to our mortgage are not interested. So has anyone had any problems with this, because this has caused us major major issues and our broker has worked her socks off trying to get round this problem but we just seem to be hitting a brick wall. Incidentally finances isn't a problem, this company has had our paperwork for 5 weeks now. We could end up homeless if this goes **** up so I have been stressing big style and in tears because I just can't see a way round it. Any advise or other stories welcome. x

Hi
Not sure if it will help, but we had some clients who also didn't get the visas put in their passports because they were told with the new VEVO system there was no need. However, Medicare nor Vic Roads would accept this and made everything really difficult. In the end we went to the local Department of Immigration department and they put the visas in their passport there and then. There were no more problems and everything worked out fine. It may be worth getting the visas put in your passport and sending them a copy.
We got a mortgage when we first arrived on a 136 (skilled independent PR) so I don't think there is anything wrong with your visa category itself.
Hopefully someone here can give you some explanation as what else may be the problem.
Good luck
Kate

[jbro31]

No point immigration said the stamp says exactly what the letters say so don't see the point, I guess we could but it seems a waste of time. J

[The Pom Queen]

No point immigration said the stamp says exactly what the letters say so don't see the point, I guess we could but it seems a waste of time. J

No worries, but the letter wasn't sufficient for Medicare and Vic Roads, so I can see others having the same issues.